06-11-2010, 06:37 PM
No, this question was in an exam paper I had at university.
I checked in some books and it seems that all questions are set with the assumption that cash flows take place all over the year.
The question for my exam was assumed that cash flows arise at the end of the year because one also had to calculate NPV and IRR for the specific projects. Though the assumption with regards to cash flows was related to all the question (ie. NPV, IRR, ARR, Payback period)
